© David Paul Morris - Bloomberg/Getty Images David Packman, Partner at Venrock AssociatesCrypto newbies these days can't take a break.
The recent failures of Signature Bank, Silvergate Bank, and Silicon Valley Bank have dealt a blow to the wider startup ecosystem, and especially to crypto startups facing the challenge of finding a new crypto-enabled banking partner. But now they are facing a more aggressive environment towards crypto following recent actions by the SEC and other regulators in the US.
“You never get bored,” David Packman, managing partner at cryptocurrency venture capital firm CoinFund, told me with a laugh last Friday.
In a first recent blow to the industry since the failure of SVB signings and crypto-backing banks, Packman said last month that he and other VCs need to "get into action" as they prepare to list banking options. for their crypto portfolio companies. Working with crypto companies. “That’s the scariest part,” he said, adding separately that while there are certainly options, “we’ve heard from a lot of banks… they don’t cater for businesses that have anything to do with crypto.” The second blow came when the SEC sent well-established crypto exchange Coinbase a closure notice on March 22, stating that the company was paralleling imminent legal action and saying that unregistered securities could be issued, one of many actions by regulators in recent years. months. Including the CFTC lawsuit against Binance to take action against the digital asset class and its players.
The implications of a strengthened US regulatory framework could be significant, and they are being felt. “This is already having an impact on the crypto technology market in the United States,” Packman says. He lamented how recent regulatory action is pushing out US opportunities and developers, saying these latest developments "absolutely" caused CoinFund to look outside the US a few months ago. (Looks like Pacman was in Switzerland when we talked last week.)
“Is it frustrating to have so many failures in such a short time? Yes that's it. But… these are not technological failures, crypto,” Pacman says. Indeed, he's remarkably optimistic: "Now is the best time to invest," Pakman says. He thinks that because it's "very difficult and because it scares a lot of people and because it's uncertain and because he has less capital" might be the right time because it will raise the price. Long term organization.
He talks about hard times, like these oil contractors, who are "embarrassed in difficult problems." And in terms of venture capital, investors can get better sales terms and less competition. When I asked about the pace and number of prequels they've written in recent weeks, Pacman said they don't announce any deals up front, but "they're all just as busy and focused as we are." Yesterday, he told me in a text message that they had "several deals in progress."
You should pass this on to the crypto community - despite the countless blows to the industry over the last 12 or so months, from the collapse of FTX to SEC regulations and growing banking troubles, they always seem to come back to fight. One more day. At least for now.
What the Sino-US dispute could mean for technology: Gary Shapiro, president and CEO of the Consumer Technology Association (CTA), recently spoke to the Fortune Global Tech Forum about the state of the technology industry in the North. America in light of the Silicon Valley recession and the impact on the banking system, and how geopolitical tensions will affect global manufacturing and innovation in the future. You can watch the interview here.
A little note from me : I'll be on vacation next week (hopefully somewhere warm and sunny: Spain!), so I won't be checking my email. If you don't have any must-try tapas recommendations, get in touch with Jessica and, as always, send your suggestions to the wonderful Jackson Fordyce.
Have a great weekends,
Ann Striders
Twitter: @AnneSraders
Email : anne.sraders@fortune.com
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This story originally appeared on Fortune.com.
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